Final salary probe

RETIREES tempted to cash in their final salary pensions will get better protection under new rules announced by the City watchdog.

firms with giant pension liabilities are increasingly offering huge one- off sums to avoid having to make ongoing payouts until the pensioner dies, but there are concerns that many do not understand they could be worse off in the long run.

The financial Conduct Authority has pledged to toughen up rules for advisers, who will now have to take customers’ personal circumstances into account when making a recommendation on pension transfers.